Piper Sandler Raises Microsoft Price Target to $650

Piper Sandler analyst Billy Fitzsimmons raised the price target on Microsoft (NASDAQ: MSFT) to $650 (from $610) while maintaining an Overweight rating.

“MSFT delivered on an already heightened bar with Azure growth of 48% y/y that beat the midpoint by ~400bps, followed by a 49-50% cc growth guide that answered the call for a sustained acceleration even with capacity delays that are pushing deliveries to 2H.

Over the last few quarters MSFT has demonstrated a strong ability to identify and monetize engineering efficiencies within the infrastructure business to deliver capacity to its customers.

The 1P offerings continued to perform well reinforced by 1) Copilot daily users up nearly 50% q/q, 2) customers actively consuming usage-based credits grew more than 75% q/q, and 3) M365 commercial cloud accelerated to 18% cc (from 15% in F4Q26) and is guided to continue to accelerate to ~19% in F2Q.

Reiterate OW. Raise PT to $650.”

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